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Let Equipment Leasing Finance Be Your Forward Momentum for Asset Financing – Use Lease Companies Today More Than Ever
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| Guest post by: Stan Prokop |
Article Overview: Information on equipment leasing finance in Canada . How lease companies and accelerate your asset financing needs.
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Let Equipment Leasing Finance Be Your Forward Momentum for Asset Financing – Use Lease Companies Today More Than Ever
A condition of advancement. That’s how ' forward '
is defined, and isn’t that whats it’s all about in business and competition. And
acquiring assets via equipment leasing finance categorically moves your company
forward. It’s the proper use of lease companies in asset finance that we'll
examine, with a focus on ' why ‘!
Canadian business owners and financial managers do
best when they view asset financing via equipment leasing finance as a ' tool
'. It's utilizing that tool to leverage assets for your business sales and
profit growth that makes lease companies the logical solution for fixed asset acquisition.
So for what type of asset does equipment finance not
work? Quite frankly we cant think of one - whether its the new kid on the block
- energy assets , or manufacturing, chemicals, food, planes, construction, auto , public infrastructure ... well .. we think
you get the story. All assets can be financed, simple as that.
Whats so hard about understanding the value that
lease companies bring to your firms table? It's a simple case of you ensuring you have chose then right asset,
and that asset then being purchased on your behalf .. ensuring your ability to
profit and grow from the use of the asset.
But that’s not all of course, because the inherent
flexibility that comes with leasing gives you the right to acquire the ownership
of the asset depending on what type of lease you construct and on what terms.
Advantages of this method of asset acquisition are
fairly well known. You are in effect matching the outlays of cash for the lease
to the benefits you will derive from the asset. The Canadian lease financing marketplace
is on a total roll in 2011 and the asset finance industry is ready for
business, yours! Interest rates are low,
lease rates are ultra competitive and in
many cases can even match bank financing, especially when you consider the
processes and collateral you might be required to go through via a bank
term loan for an asset .
2 to 5. What
do we mean by that? Simply that that’s the typical duration of an asset lease
in Canada
- anywhere from two years to five years. We can’t remember when we have seen a
lease term less than two years, because it simply doesn’t make sense for lease
companies - although on occasion 7 and 10 year terms are available for certain
asset classes... think heavy constructionb, aircraft, infrastructure, etc.
Clients can be forgiven for usually focusing only on
the cash and working capital preservation aspects of equipment leasing finance
.If you have limited capital, or don’t wish to disturb other financing you have
in place leasing makes sense. Yes it’s true, this method of financing doesn’t
deliver cash to your company, but it sure prevents it from leaving quickly... and
in large amounts.
It’s of course an understatement to say that we’re
doing business in a tech driven environment, so computers, telecom, and other
tech assets lend themselves perfectly to equipment finance.
If you're concerned or simply want to become better
informed about how to go about achieving the best benefits of this financing
vehicle speak to an experienced, trusted and credible Canadian business financing
advisor who can assist you in ensuring you're ' moving forward ' via this
valuable tool in Canadian business financing.
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About the Author: Stan Prokop RSS for Stan's articles - Visit Stan's website Stan Prokop is the founder of 7 Park Avenue Financial . The firm specializes in business financing for Canadian companies in the areas of working capital , asset based lending, SR & ED tax credit financing, equipment financing, franchise financing and banking .
Click here to visit Stan's website Trucking and Transportation factoring in Canada Real World Lessons On Inventory Financing from Purchase Order To Cash Discover The Foremost Method Of How To Get Financing When You Buy a Franchise Opportunity in Canada Going It Alone In Canadian Franchise Loan Financing Business Franchising Loans Starting a Franchise Looking For Business Money To Finance A Franchise |
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